Dear DecadeThinkers,

In the past decade, I made these sucker mistakes in my personal account:

Sucker A has 95% understanding on 100 penny stocks.

• Useless. Does not drive price

• Price on penny stocks is driven by beta liquidity + insider volume

• Loses money quickly

Sucker B buys great assets at market ATHs. He buys after the institutions and ambitious grandmother has bought in, gets FOMO and has unthorough research.

• Floats a loss quickly

• Psyche burdened by loss, checks price daily

• Sells at a loss as next ATH is months away from current ATH

Sucker C believes in heavy allocations and “all-in” without having a large edge.

• Edges are probabilistic

• Minimize factors of risk - be direct, avoid complexity

• Eventually loses heavily - a death sentence in a geometrically compounding world

Sucker A fix: Focus. On the market leader. Define your market well. Sucker B fix: Wait. Until fair value has been reached (Nothing here about new lows). Sucker C fix: Reduce. Admit you have no edge. Halve your intended allocation.

Mistakes to cumulative losses of 80%! on three occassions in the past decade, with principal in the 100s, 1,000s and 10,000s. No affect to lifestyle. Yes affect to psyche. Gambling wrecks havoc on the psyche.

Corollary: If you are in an irrational enough state to do things you know to be wrong AND outside your circle of competence, i.e. Writing naked call options. Please stay out of the market for the time being. Demote yourself from a portfolio manager to research analyst - if you must twaddle.

Using $100 to earn $10 pa investing makes no sense when your total capital is low and returns << working income potential. Instead, spend little time on investing, more on living. Invest in life.

Dogmatism and unrealistic dreams earns you losses very quickly. Think independently. Then re-think. Then re-think against your stance. Very few events are directional a priori as we would like them to be.

No advice via positiva, especially coming from a money-losing manager.

Yours Truly, DecadeThunk

Dear DecadeThinkers,

In the past decade, I made these sucker mistakes in my personal account:

Sucker A has 95% understanding on 100 penny stocks.

• Useless. Does not drive price

• Price on penny stocks is driven by beta liquidity + insider volume

• Loses money quickly

Sucker B buys great assets at market ATHs. He buys after the institutions and ambitious grandmother has bought in, gets FOMO and has unthorough research.

• Floats a loss quickly

• Psyche burdened by loss, checks price daily

• Sells at a loss as next ATH is months away from current ATH

Sucker C believes in heavy allocations and “all-in” without having a large edge.

• Edges are probabilistic

• Minimize factors of risk - be direct, avoid complexity

• Eventually loses heavily - a death sentence in a geometrically compounding world

Sucker A fix: Focus. On the market leader. Define your market well. Sucker B fix: Wait. Until fair value has been reached (Nothing here about new lows). Sucker C fix: Reduce. Admit you have no edge. Halve your intended allocation.

Mistakes to cumulative losses of 80%! on three occassions in the past decade, with principal in the 100s, 1,000s and 10,000s. No affect to lifestyle. Yes affect to psyche. Gambling wrecks havoc on the psyche.

Corollary: If you are in an irrational enough state to do things you know to be wrong AND outside your circle of competence, i.e. Writing naked call options. Please stay out of the market for the time being. Demote yourself from a portfolio manager to research analyst - if you must twaddle.

Using $100 to earn $10 pa investing makes no sense when your total capital is low and returns << working income potential. Instead, spend little time on investing, more on living. Invest in life.

Dogmatism and unrealistic dreams earns you losses very quickly. Think independently. Then re-think. Then re-think against your stance. Very few events are directional a priori as we would like them to be.

No advice via positiva, especially coming from a money-losing manager.

Yours Truly, DecadeThunk